Stifel Reports GROWING DraftKings Market Share in OSB Industry
In the online gambling scene of the United States, there's a duopoly dominated by FanDuel and DraftKings, both owned by Flutter Entertainment and DraftKings respectively, and it seems like DraftKings is picking up more customers. This is according to the second edition of Stifel's "Online Gambling Monthly Tracker" analysis where Jeffrey Stantial states that the US online sports betting market share is consolidating between these two operators, with DraftKings experiencing slight growth.
June data indicates a step function increase in handle share for DraftKings, even though there was also an unfavorable hold percentage. Flutter informed investors that in the first half of 2023, FanDuel accounted for 47% of the regulated internet sports betting market in America. Combined, FanDuel and DraftKings have nearly 75% of the US market.
While sports betting steals the spotlight due to its presence in more states than iGaming, the latter is seen as the bigger driver for the future growth of the gaming industry. In this sector, operators like Caesars, DraftKings, and FanDuel are exploring each other's markets, with BetMGM losing its grip.
As mentioned by Stantial, "on the iCasino front, we’ve talked to recent deconsolidation trends in recent reports with DraftKings, FanDuel, and Caesars (to a lesser extent) taking share, primarily from BetMGM." This month, Stantial points out that BetMGM experienced a slight increase in Michigan market share, ending its seven consecutive months of market share contraction.
DraftKings made a huge move with its acquisition of Tilman Fertitta's Golden Nugget Online Gaming (GNOG). This acquisition placed them in leading positions in the states where GNOG was previously operational.
Stantial outlines several factors for investors to keep an eye on when it comes to iGaming and online sports betting:
- The November launch of PENN's ESPN Bet and its marketing/promotional campaign
- The integration and rollout of the Fanatics-acquired PointsBet platform
- The launch of a standalone Caesars iCasino app
- DraftKings' introduction of in-house priced live sports pick-em (SGP) games this season
- BetMGM's incorporation of Angstrom Sports and enhancements to their parlays and in-play product
- The closure of WynnBet and Fox Bet, which only account for a marginal percentage of the overall market share
Fanatics' entry into mobile sports betting this week has allowed for a rational level of promotional spending in the industry. However, there are concerns that this could spike with the arrival of Fanatics and the upcoming debut of Penn Entertainment's ESPN Bet. Stantial doesn't predict it to match the levels of late 2021 and the first half of 2022, which alarmed investors.
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Source: www.casino.org
